1. A. Program features.

   1. 1. Section 8 is a rent subsidy program funded by the U.S. Department of Housing and Urban Development (HUD) to enable low-income families to rent privately owned decent, safe and sanitary housing. Section 8 is administered by local housing agencies. Landlords receive a subsidy representing the difference between 30% of an eligible tenant's adjusted gross household income and reasonable housing rent as determined under program rules.

      1. a. A certificate based on the income of the recipient and the rent paid;
      2. b. A voucher, which pays a specific amount toward the recipient's rent; and

      3. c. Market rehab unit.

         The first two program types are portable, meaning the benefit moves with the recipient. The market rehab form stays with the housing facility.

      There are three types of Section 8 housing:

   2. 2. Section 8 assistance has a feature that is superior to the relocation rent supplement in that it is not limited to 42 months, but continues as long as the recipient household is income eligible. The district office should make every effort to relocate existing Section 8 recipients to units in which their Section 8 benefits will continue. If a normal relocation rent supplement is paid, the local housing agency may consider this income, and disqualify the displaced household from eligibility for Section 8. It may be difficult to reenter the program, as there is usually a long waiting list. The district office should closely coordinate with the administering local housing agency.

2. B. Replacement housing payment computation. In order to transfer Section 8 benefits the recipient must relocate to a decent, safe and sanitary unit in which the owner agrees to participate in this program. Local housing agencies generally maintain current lists of participating owners and properties.

   1. 1. For the certificate program, rent must be less than the ceiling set as fair market rent in the HUD schedule for the local area. Housing agencies will provide a copy of the current HUD established local schedule.
   2. 2. For a recipient in the voucher program, Section 8 will pay up to the housing authority approved payment standard for the area. This is usually 80-100% of the fair market rent in subdivision 1 of this subsection. The recipient may pay the landlord the difference if actual rent is higher than the standard.

   3. 3. Market rehab Section 8 recipients may remain in Section 8 on concurrence of the local housing agency and the landlord.

      In determining the rent supplement amount, assume utility costs are the same as before relocation. An effort should be made to use comparable dwellings meeting Section 8 criteria. The standard of base monthly rent should be used, which is the lower of the following: existing rent before subsidy, market rent, or 30% of income. Under the Section 8 certificate program, rent paid should be the same as 30% of income. However, this will not always be the case in the voucher program. An example is provided below:

      	Example Rent Supplement - Section 8 Voucher Program
      	FACTS BEFORE RELOCATION:
      	Displacee household income	$1,000/month
      	30% of income	$300/month
      	Fair market rent and contract rent	$550/month
      	Actual rent paid (Section 8 voucher = $225)	$325/month
      	AFTER RELOCATION:
      	Displacee moves to comparable housing at $550/month and retains Section 8 voucher paying $225 to landlord. VDOT pays rent supplement on incremental difference between 30% of income ($300) and actual replacement rent ($325).
      	($325 - $300) X 42 months - $1,050

   The criteria below will apply, corresponding to the type of Section 8 program the displacee is receiving:

3. C. Displacee options. The agent will inform the displacee of the replacement housing payment, both with and without Section 8 participation and advise of the following options:

   1. 1. Accept VDOT conventional rent supplement, which is limited to 42 months, and may disqualify the displacee for Section 8 in the future;
   2. 2. Receive down payment subsidy of $7,200 to assist in purchase of a replacement dwelling; or
   3. 3. Retain Section 8. VDOT will pay rent supplement only to the extent of any difference between Section 8 subsidy and base monthly rent (as in above example). In most cases, the VDOT payment will be $0. Tenants should be encouraged to accept this option if they plan to continue to rent and have no prospects of significant increase of income.
4. D. Tenant not on Section 8 before displacement. Determine rent supplement based on comparable unsubsidized housing, and the lesser of existing rent, market rent or 30% of income if classified as low income by HUD. This is a conventional rent supplement situation. If the tenant moves to Section 8 housing as a replacement, recalculate based on the net increase (if any) in monthly housing cost to the displacee after applying the Section 8 subsidy.

Statutory Authority

§ 25.1-402 of the Code of Virginia; 42 USC § 4601 et seq.; 49 CFR Part 24.

Historical Notes

Derived from Virginia Register Volume 18, Issue 3, eff. November 21, 2001; amended, Virginia Register Volume 21, Issue 13, eff. April 6, 2005; Volume 30, Issue 26, eff. October 26, 2014.